VANCOUVER, Aug. 17, 2012 /PRNewswire/ – TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), reports that it has acquired 25,975,000 common shares in the
capital of Coronado Resources Ltd. (TSX-V: CRD) pursuant to a private placement by Coronado, at a price of $0.12 per common share (the “Private Placement“). The common shares acquired by TAG pursuant to the Private Placement
represent approximately 40.2% of Coronado’s issued and outstanding
common shares.

TAG did not own any securities of Coronado prior to the Private
Placement.

The common shares acquired by TAG pursuant to the Private Placement were
acquired for investment purposes and TAG may, depending on market and
other conditions, increase or decrease its beneficial ownership of
common shares or other securities of Coronado whether in the open
market, by privately negotiated agreement or otherwise. No person is
acting jointly or in concert with TAG in connection with the purchase
of the common shares.

This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting
Issues, which also requires a report to be filed with regulatory authorities
in each of the jurisdictions containing additional information with
respect to the foregoing matters (the “Early Warning Report“). To obtain a copy of the Early Warning Report filed in connection
with the Private Placement, please see Coronado’s profile on the SEDAR
website at www.sedar.com.

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations
focused exclusively in New Zealand. With 100% control over all its core
assets, including oil and gas production infrastructure, TAG is
enjoying substantial oil and gas production and reserve growth through
development of several light oil and gas discoveries. TAG is also
actively drilling high-impact exploration prospects identified across
more than 2.9 million net acres of land in New Zealand.

In the East Coast Basin, TAG has entered into a farm-out agreement with
Apache Corp. on three permits to explore and potentially develop the
major resource potential believed to exist in the tight oil source-rock
formations that are widespread over the Company’s acreage. These
oil-rich and naturally fractured formations have many similarities to
North America’s Bakken source-rock formation in the successful
Williston Basin.

SOURCE TAG Oil Ltd.